The Internet of Things (IoT) is a disruptor to many businesses and industries, redefining, simplifying, and optimising what is possible whilst simultaneously creating newer, more flexible business models (e.g. as-as-service, subscriptions, monetising IoT insights, pay-per-usage and more). The benefits of IoT adoption are clear so why aren’t more companies successfully doing it?
Research has shown that 30% of IoT projects fail in the proof-of-concept stage, many due to the bottom-line benefits being unclear against the implementation costs. Others fail because execution timescales elongate, and businesses are reluctant to write off the sums already invested. Finally, for those who have previously tried unsuccessfully, there is a natural reticence to try again, even though the benefits look so favourable.
To help encourage and accelerate the successful adoption of IoT and the right digital technologies, IoT Horizon has developed a four-stage process to “MPWR” our clients. This iterative, agile process learns from and builds on the previous experience and knowledge, allowing rapid ideation through execution and onto rollout and adoption. The four-stage process provides natural breakpoints where the business can assess progress, costs and benefits and decide whether to continue or not. These breakpoints help ringfence the businesses exposure and avoids the “bet the farm” emotions that often cloud the decision whether it is in the businesses best interests to continue. In fact, those customers we have MPWR’d have often said the breakpoints and ability to retain control was the key reason for proceeding with our process.
Stage 1. MOTIVATE: How do we motivate the business and employees to support and adopt the new way of working enabled by the introduction of IoT? The Motivate process starts small at first, then leverages the internal advocates that emerge throughout the other three stages to trailblaze the necessary behavioural changes and demonstrate the benefits the program and change delivers.
Stage 2. POSSIBLE: This short, typically 2-3 days, highlights whether the idea or project is commercially viable. Using data supplied by the business, combined with publicly available data, assumptions, and IoT Horizon’s own experience, we can quickly identify the key benefit and cost blocks to see if the program is commercially viable. One customer had built their initial commercial proposition around a volume they felt was reasonable. When cross-checked, IoT Horizon were able to point out their volumes were too conservative compared to the anticipated market and suggested more realistic volumes. The revised business case highlighted a more realistic, improved outcome which meant the operation could be scaled-up accordingly. The outcome of the Possible stage is to have sufficient information to decide whether to proceed to the next stage, Workable, or not.
Stage 3. WORKABLE: Having agreed the commercial viability the Workable stage determines how the IoT Solution would work and can typically take between 2-4 weeks. This not only includes identifying the appropriate technology but also defining the initial specification, whether the solution is bespoke, off-the-shelf or something in-between. Workable also defines the type of environment, for example Cloud, Hybrid or On-Prem. As more information is gathered and assumptions tested, so the business case is further refined. Also new revenue streams (LoRs or even Lines of Business LoBs) can be identified. Also Identified is a rough-cut plan for the activities required to complete a Rapid Prototype. Finally, during this stage, we can identify how the solution could be supported and likely funding sources or grants which may be applicable. These build on the artifacts and learnings produced in the Possible stage and the updated figures re-presented to the business for consideration and a decision whether to proceed to the final stage, Rapid Prototype.
Stage 4. RAPID PROTOTYPE: This stage typically could take between 2-6 months and turns the in outputs of the Workable phase into a rapid prototype of the solution. This is a minimum viable product (MVP) which allows the incorporation of user or customer feedback to firm up the solution into something that can be commercially released and iterated. Whilst the MVP is being developed, any agreed software (such as Application, Web Page, Dashboard etc) will be created, the support structures agreed and provisionally put in place. Any commercial arrangements agreed and built into a Memorandum of Understanding or Contract. Supply chains agreed and finalised. Funding and/or grants applied for or received and an iteration roadmap for the solution, including soft launch, hard launch, first update. This allows for the early iterations to be improved and enhanced with the learnings from subsequent deployment or events. The business case continues to be revised and improved as the key costs and benefits become known and agreed. This may also include new LoRs such as subscription services or value-added services. For one Industrial Goods Manufacturer, IoTH were able to show how they could pivot their business model generating their revenues from a pay-per-use full-service model that gave their products away for free, rather than charging a per unit price and optional maintenance charge.
IoT Horizon are uniquely placed to deliver an end-to-end IoT solutions that provide access to cutting-edge innovation to ensure IoT Solutions are implemented in a timely and low-cost manner using an experienced team of highly skilled colleagues across product design, hardware, software, solution design and project management.
We’re ready to MPWR your business, are you?
Get in touch with the team today at firstname.lastname@example.org
or call us on 01706 318110 and ask for Niamh/Deyrick